Canada and Mexico Push Back

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Canada and Mexico have voiced strong opposition to the Trump administration’s potential tariff measures, calling for dialogue and cooperation to preserve the economic ties that underpin North American trade. This follows comments by former U.S. President Donald Trump at the World Economic Forum in Davos, where he suggested steep tariffs and criticized trade imbalances with Canada and Mexico.

During a conversation on Wednesday, Canada’s Foreign Minister Mélanie Joly spoke with U.S. Secretary of State Marco Rubio to address these issues. Minister Joly congratulated Rubio on his recent appointment and emphasized the shared priorities between Canada and the United States. However, she underscored the negative impacts that “unjustified tariffs” could have on both countries.

“These tariffs would hurt Canadians and Americans alike,” Joly stated, highlighting the integrated nature of North American supply chains. Joly also affirmed Canada’s commitment to advancing energy security in the region, offering Canada’s resources as a means to reduce reliance on “non-likeminded partners.”

Meanwhile, Trump doubled down on his criticism of Canada during his remarks in Davos, claiming, “We don’t need their lumber, because we have our own forests. We don’t need their oil and gas. We have more than anybody.” He also floated the possibility of Canada becoming a U.S. state as a facetious solution to trade imbalances, a comment that sparked widespread criticism in Canada.

In response, the Aluminum Association of Canada and the Canada U.S. Trade Council are mobilizing business leaders to advocate for tariff-free trade. “The tariff-free flow of aluminum is essential to the success of more than $10 billion worth of U.S.-based industry investment,” the Aluminum Association stated, underscoring the high stakes of potential tariffs.

Mexico has also indicated it would retaliate if tariffs are imposed. A joint statement from Mexican trade officials reiterated the importance of maintaining free trade agreements that support North American competitiveness.

Although President Trump suggested a 25% tariff on Canada and Mexico could be implemented as early as February 1, no formal announcement has been made, and the White House has not yet issued an executive order to that effect. The uncertainty is raising concerns among industries reliant on cross-border trade.

As Canada prepares to assume the G7 presidency in 2025, Joly and Rubio agreed on the importance of leveraging the forum to address global challenges, including the growing alignment between China, Russia, and Iran. However, this cooperation may be tested as trade tensions escalate.

For now, Canada and Mexico are signaling their readiness to defend their economic interests.

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